A government wants to reduce the incidence of anti-social behaviour which can result from excess alcohol consumption
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A government wants to reduce the incidence of anti-social behaviour which can result from excess alcohol consumption by young people aged between 18 and 25. Which do you think leads to a fairer market outcome: a specific tax on every unit of alcohol sold or an ad valorem tax on the price of alcohol equal to 25 per cent of the price per unit? Use diagrams to help support your answer to the question.
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To determine which tax policy leads to a fairer market outcome in reducing antisocial behavior resulting from excess alcohol consumption among young p...View the full answer
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